Personal Accident Insurance

Personal accident insurance is an essential product that most people usually ignore. This kind of insurance provides comprehensive protection in case unfortunate or unforeseen events that may afflict a person.

Accidents occur randomly and can lead to various losses and inconveniences, so a personal accident policy gives one a sense of security knowing that you and your family have adequate protection in the event of these misfortunes. It is worthy to note that there are various types of personal accident insurance that cover a varying range of accidents or incidents.

Is Personal Accident Insurance Important?

You’re probably wondering if it is necessary and just did a quick calculation about the number of accidents you have encountered in the past and how much they had cost you. In fact, some of us will need personal accident coverage, while others will never need the coverage.

The Unpredictable Nature of Accidents

No one in this world stays at home and earns money to survive. Scrap that, accidents can happen in the home as well. If you commute to work/ school everyday, it is interesting to note that in the Philippines, there is a high number of road accidents that occur every year. It is a fallacy to think that there is no probability of being a victim of an accident.

Insurance at Work: Is it Enough?

Company-sanctioned coverage is seldom enough, especially if your job is physically risky. Coverage is also never customised to your specific needs, so the only way to ensure sufficient and customised coverage is to take out a personal accident policy independently.

Savings Might not Suffice

In the event that you meet an accident and you ignored getting personal accident insurance coverage, your savings in the bank or even at home might not suffice to cover your expenses. Therefore, it would be best if you secure yourself financially with personal accident coverage. For example, if the PUV that you were in met an accident and you were badly injured; you would need medical assistance. Most private hospitals today in the Philippines will not attend to patients without first being assured that the patient is able to cover medical bills. On the other hand, the hospitals run by the government are too small to accommodate all the patients that are why some patients are forced to use their savings to get medical assistance.

There are many crucial reasons why you may need a personal accident insurance policy. However, it is for you to decide which policy is best for you. This article shows you how to claim your personal accident expenses.

The post Personal Accident Insurance: A Need or An Option? appeared first on iMoney.ph.

Ano ang Personal Accident Insurance?

Ang personal accident insurance ay isang importanteng aspeto ng ating mga buhay na kadalasang hindi napapansin. Karaniwan, ito ay uri ng annual policy na nagbibigay ng masusing proteksyon para sa mga aksidente sa hinaharap.

Dahil sa maaaring maganap ang mga aksidente kahit saan at kahit kalian, ang patakarang gaya nito ay nagbibigay sa’yo ng kasiguruhan na protektado ikaw at ang iyong pamilya sa lahat ng oras. Subalit, tandaan na ang bawat personal accident insurance ay nagkakaiba sa uri ng aksidenteng kanilang nasasaklaw. Kadalasan, marami satin ay masyadong pinalalawig ang sakop ng mga insurance at mga alituntunin nito. Halimbawa, ang patakaran ay hindi isinasali ang mga kaso ng pagpapakamatay, pagkamatay sa panganganak, at iba pang uri ng aksidente. Isa pa, ang halaga na saklaw ay dumedepende sa patakaran ng iyong binayaran.

Gaano kaimportante ang Personal Accident Insurance?

Ang unang bagay na pumapasok sa ating utak ay ang pangangailangan ng personal accident insurance. Maaaring nakwenta mo na agad sa isip ang mga aksidente mo noon. Sa totoo lang, may ilan sa atin na kailangan ito at mayroon ding masusuwerteng hindi ito kailangan. Subalit, paano mo malalaman? Ang mga aksidente ay hindi nagsasabi kung kalian sila magaganap, nangyayari lang sila bigla.

Kaya’t narito ang pangunahing batas: Maaaring kailanganin mo ito: Narito kung bakit:

Ang mga Aksidente ay Hindi Mahuhulaan

Wala tayong pare-parehong buhay. Araw-araw ay pumapasok tayo sa trabaho at humaharap sa iba’t-ibang sitwasyon. Ang mga statistika sa mga aksidente sa lansangan ay hindi kaaya-aya sa mga nagdaang taon at minsa’y hindi sapat ang pagiging maingat lang. Ang mga aksidente sa kalye ay isang sa mga ito pero marami pang aksidente na pwedeng mangyari kahit sa bahay mo. Walang ligtas na lugar at hindi din pwedeng mabuhay tayo sa takot. Ang pagkakaroon ng personal accident policy ay nagbibigay sa’yo ng kakuntentuhan sa pagkontrol ng mga bagay na hindi mo kayang kontrolin.

Ang iyong insurance sa trabaho ay hindi sapat

Minsan, ang mga trabaho ay maaaring peligroso at ang insurance bilang trabahante ay kulang. Ito ay dahil ang ganitong uri ng insurance ay kadalasang tinatago sa mga empleyado ang patakaran at halaga ng saklaw at kadalasa’y limitado. Kaya naman, ang pagkuha ng personal accident policy ay binibigyan ka ng kalayaang pumili ng plano at uri ng saklaw na totoong kailangan mo.

Ang iyong ipon ay hindi sapat sa isang hindi inaasahang pangyayari

Hindi lingid sa atin na marami ang wala o may maliit na ipon lamang. Tayo ay may mga hindi prediktableng pamumuhay ay marami sa atin ang sumasabay lamang sa alon ng buhay. Paano mo haharapin kung ang iyong araw-araw na pamumuhay ay guluhin ng kamalasan? Kakayanin mo bang bayaran ang mga gastusin sa ospital na maaaring umabot sa libong piso o higit pa? Mahirap magtamo ng sugat sa mukha at mas mahirap mag-isip ng paraan para mabayaran ang ospital at mga simpleng gastusin kalakip ng iyong sugat. Higit pa diyan, paano ang iyong pinakamamahal na pamilya sa kaso ng aksidenteng pagkamatay mo? Ang personal accident insurance ay tutulungan kang tulungan ang iyong pamilya sa mga problemang pinansyal na maaari nilang harapin.

Napakaraming importanteng aspeto kung bakit kakailanganin mo ng personal accident insurance. Subalit, nasa sa’yo ang desisyon para sa tamang insurance na may angkop na benepisyo.

The post Personal Accident Insurance: Pangangailangan nga ba? appeared first on iMoney.ph.

The hype behind debit cards comes from the growing interest in cashless shopping, a trend started by credit cards. In addition to the convenience it provides, a debit card frees you from the risk of incurring large amounts of debt on uncontrolled credit card spending.

While this is an interesting proposition, it is essential that we carefully evaluate them (objectively) before signing up for one. Use the following pointers to make your decision on whether to take out a debit card.

Online Research

Do your research through trusted online resources regarding the debit cards you are considering. Use comparison websites that pool information on all financial products (such as iMoney) to compare these products and determine which option works best for you. This enables you to easily compare the pros and cons of each debit card product offered in the Philippines.

No Fees and Charges

Benefits aside, a debit card is a good product to use since it is offered free for us since our ATM card doubles as a debit card, this is unlike to other countries wherein there are annual fees to pay to use a debit card.

Read the Terms and Conditions

Do not overlook the terms and conditions printed in the fine print. Sure it is never exciting to read the fine print, but they often contain crucial terms and conditions that may affect your debit card usage in the future. Alternatively, compare debit cards on iMoney and read about the hidden terms and conditions behind each debit card, all on one website.

So you’ve gotten your debit card. How do you use it appropriately?

Set a Limit of Your Own

It is well-accepted that most debit card companies in the Philippines sets limits for purchases within a month. Now you would not want to reach the limit, right? If so, you should consider setting your own limit before the bank notifies you that you have reached your limit. This helps in reducing unnecessary spending.

Avoid Huge Purchases

In the Philippine setting, it is never ideal to use your debit card for large purchases. This means that if you go on a shopping spree and your total bill is PHP 30,000, you should consider paying via cash instead.

Beware of Identity Theft

Identity theft is becoming more rife, and fraudulent transactions using stolen debit cards or debit card numbers is arguably more dangerous than fraudulent credit card transactions. Since debit cards are linked to savings accounts, unauthorised use could wipe out your entire savings account. It is essential to be careful with protecting your debit card from such theft.

Like this article? Find out more about Debit Cards!

The post Secrets of Getting and Maintaining a Debit Card appeared first on iMoney.ph.

It’s always a smart move to insure yourself and your loved ones, a personal accident policy makes sure that you are totally covered when you meet unexpected accidents. An accident insurance can cover just about any type of accident; it is not limited to accidents that may occur at the office. When you decide to get yourself an accident insurance policy your various financial needs like hospital bills, medical expenses and even cash reimbursements for your family in case of death will be covered for the entire period of your recovery.

Accidents happen when you least expect it and this is the main reason why having a personal accident policy is very important. This type of policy will provide you with funds for all your financial needs until you recover from your accident. However unlike ordinary life insurance policies you will not get compensated if the cause of your injury or death is brought about by natural causes. Another thing to keep in mind is that if you willingly put yourself at risk and you get injured you will lose your ability to make financial claims.

What makes a good personal accident policy?

Every client has specific needs and you must make sure that you pick a personal accident plan that is tailored for your needs. Below are some of the factors you need to consider when looking for the right personal accident policy.

#1 Coverage and Compensation Amount

A good policy is something that can adequately cover you and your family. It needs to provide you with hospitalization benefits as well as full coverage for all of your medical expenses. It should also provide additional benefits like disability and death compensation. Your policy needs to cover all the types of accidents that you are most likely to face at the office, at home and just about anywhere. You should also pay attention to the amount of compensation. The amount is most likely to depend on the level of risks and the size of your family. Ask your policy provider how much you can claim. The amount that you will get will cover for your major expenses while you are still recovering so make sure it is more than enough to help you and your family.

#2 Exclusions

It is also of utmost importance to read exclusion clauses. Most people ignore exclusions and limitations and this brings up almost 90% of rejected claims and unwanted dispute cases. Below are some of the most common exclusions:

• You are not eligible for this insurance if you are over 75 years old.
• This policy will be void if you drive under the influence of drugs and/or alcohol.
• Accidents caused by extreme sports like Sky Diving, White Water Rafting, Mountain Climbing and others can also void this policy.
• Self-Inflicted Injuries, Willingly putting yourself in harm’s way and Suicide.
• Individuals that suffer from terminal illnesses like AIDS, Ebola Hemorrhagic Fever, Pancreatic Cancer, Etc.

These events will forfeit all of your benefits and you will not be eligible for any claims so always read and understand the exclusion clauses.

#3 Benefits

The main reason why you’re getting a personal accident policy is to provide yourself and your family with the right amount of financial coverage in case you get injured or die due to an accident. There is an equivalent amount of compensation for certain types of injuries and accidents. You need to familiarize yourself with the amount that you can claim in case an accident occurs. Some policy providers can provide full coverage from hospitalization down to cash reimbursements. Short-term and long-term disability coverage is also important because when a person gets injured he won’t be able to work and this means he cannot generate income for his family until he fully recovers and if he gets severely injured he won’t be able to work for the rest of his life. Always check if your policy provider can provide you with 100% or 50% of the sum insured to ensure that you will be properly compensated.

#4 Beneficiaries

When the policy holder dies the person nominated as beneficiary will receive all the benefits from the insurance plan. That person should be aware that he is listed as the beneficiary in order to claim the benefits without any hassles. Anyone can nominate a person as his beneficiary as long as he is 18 years old and above. The nomination process takes place at the time you apply for your personal accident policy but if needed you can go through the nomination at a later time, a witness who is 18 years old or above needs to sign the nomination form as well.

The things listed above are just some of the important factors you should look out for when looking for the best accident insurance policy. To learn more about this topic, check out some of our personal accident insurance articles.

The post Tips On Choosing The Right Personal Accident Policy For Your Needs appeared first on iMoney.ph.

Iba ang mga terms o kondisyon ng  personal accident insurance kung ikukumpara sa ibang klase ng insurance policies. Kung ang life insurance ay makatutugon sa pagkakasakit o pagkamatay dulot ng natural na pangyayari, ang mga dahilang ito ay hindi kabilang sa sinasagot ng personal accident insurance. Ang karamihan sa mga personal accident insurance policies ay hindi rin sumasaklaw sa mga taong ignorante o mga taong boluntaryong nilalapit ang sarili nila sa panganib. Mas mataas din ang halaga ng coverage ng personal accident insurance kaysa sa ibang policies, dahil mas mahigpit ang mga kondisyon na nakapaloob dito.

Ilang mga konsiderasyon bago pumili ng personal accident policy 

Ang pagpili ng tamang personal accident plan ay mahalaga lalo na kung meron kang natatanging mga panganailangan. Dahil diyan, nararapat lamang na pag-aralan mo ang iba’t ibang salik nito at ikumpara ang mga iba’t ibang klase ng personal accident plans. Ang mga sumusunod ay ilang mga bagay na dapat mong pag-isipan:

• Coverage. Ano ang sapat na coverage (o halaga ng perang matatanggap sa panahon ng aksidente) para sa iyo at iyong pamilya? Kailangan mong maintindihan ang sakop ng coverage, at ang iba’t ibang klase ng coverage na kabilang sa plan. Halimbawa, maaring gusto mong may kasamang hospitalization at medical expenses coverage ang iyong plano. Baka gusto mo rin na may kasamang compensation ang plan para sa panandalian o permanenteng kapansanan na dulot ng aksidente. May ilang policies na sagot  ang mga gastusing medikal habang ikaw ay nasa ospital, at meron din naman na  binabayaran pati ang mga kailangang bayaran pagkatapos ng aksidente.
• Exclusions. Ang mga nakasaad sa Exclusion Clause ang mga kundisyon at bagay-bagay na hindi kasali o hindi sakop ng iyong personal accident plan. Mahalaga ang mga bagay na tinatalakay sa bahaging ito ng plan, at hindi pwedeng pahapyaw lang ang pagbasa nito. Ang kabiguang maintindihan ang mga ito ay nagreresulta sa mga claims o paghahabol na pinagtatalunan o hindi tinatanggap. Ang iba’t ibang insurance companies ay may sari-sariling mga exclusions. Pangkaraniwan, nililista sa exclusions ang mga sitwasyon na hindi sakop ng iyong policy. Halimbawa, hindi sakop ng karamihan sa mga personal accident insurance plans ang mga bagay tulad ng pagkakasakit, mga pinsala na ikaw mismo ang gumawa sa iyong sarili, mga delikadong sports, at mga gawaing ilegal. Kung naiintindhihan mo ang mga limitasyon ng bawat plan, magiging madali sa ‘yo na mag-desisyon.
• Benefits. Upang makahanap ng tamang personal accident plan para sa ‘yo, kailangang malaman mo ang halaga ng compensation na ibabayad sa ‘yo ng insurance company. Tandaan na ang bawat klase ng injury ay mga sariling compensation. Ang benefits ng plano ay magkakaiba at depende sa insurance company. May ilang kumpanya na nagbibigay ng 100% ng “sum insured” para sa mga partikular na injury, samantalang ang ilan ay nagbibigay lang ng 50%. Ang “sum insured” ay ang maximum na halaga na ibabayad ng insurance company kung ikaw ay naaksidente.
• Beneficiaries. Sa pagkakataong ikaw ay pumanaw, ang taong iyong isinaad bilang beneficiary ang makakatanggap ng bayad mula sa iyong insurance. Ang ipinapayo ay dapat tukuyin mo ang iyong beneficiary, at siguraduhing mong alam ito ng taong napili mo. Para dito, kailangan mong isulat ang pangalan ng beneficiary sa iyong nomination form. Kung walang nakasaad na beneficiary, mas mahabang proseso ang hihintayin bago mabigay ng insurance company ang compensation. Kailangan pa kasing kumuha ng “grant of probate” o “letters of administration” mula sa korte para maasikaso ang perang dapat makukuha mula sa iyong insurance

Ilan lang ang mga ito sa mahahalagang bagay na kailangan mong pag-isipan bago kumuha ng personal accident insurance. Kung gusto mong matuto pa tungkol dito, tignan ang aming mga articles tungkol sa personal accident insurance.

The post Tamang Pagpili Personal Accident Policy appeared first on iMoney.ph.

Some banks in the Philippines sometimes put a sample computation for their housing loan interests on their websites, however not all of the banks provide this kind of information. Some are only willing to provide calculations for walk-in clients. However, you don’t need to be a rocket scientist to understand how your home loan works. Below are some of the things you should keep in mind in order to easily crunch those numbers.

Principal – The total amount borrowed or owed on any type of loan is called the principal. Making monthly payments on a basic fixed-rate loan will gradually reduce your principal.

Interest Rate – An interest rate is a rate that is charged for the use of money. In the Philippines it is calculated as an annual figure even if the repayment schedule is not yearly. For example, home loans are advertised with an APR (Annual Percentage Rate) of 2.9% even if the payments are spread out over three years. The interest rates charged by banks in the Philippines are determined by the Prime Lending Rate of the Bangko Sentral ng Pilipinas (BSP). Say for example the PLR is 6% and the interest rate for a loan with a “BLR-2%” would be 4%.

Loan Term – This is the length of time or period wherein you can repay your housing loan. The usual term for housing loans in the Philippines is up to 20 years. You can apply for a home loan at Bangko de Oro (BDO) for a minimum of P500,000.00, you can get up to 80% of the appraised value of the property with a loan term of up to twenty years.

Here is an example:

You are going to apply for a housing loan of P500,000.00 which will be payable in 20 years. Then you will agree to an interest rate of 4% per annum (BLR is at 6% so: 6%-2%). The home loan amount is P500,000.00, the interest rate is 4% per annum and the loan period is 20 years. Banks in the Philippines calculate the interests on home loans monthly. To illustrate how your first home loan repayment is calculated here is a sample computation:

Principal loan is P500,000.00

4% interest per annum = .33% monthly interest (4% divided by 12 months)

Your interest charge for the first month will be P1,650.00 because you applied the .33% monthly interest rate to your Principal loan which is P500,000.00

Getting Your Monthly Repayment Schedule

Now that you know your first month’s interest charge you can have an idea about your repayment schedule. The interest charge at P1,650.00 each month may go up or down depending on your loan agreement with the bank. The extra payment will help in reducing your debt (the loan principal balance). Your loan for the second month will go down because you paid a little extra on your first month and because the interests on your home loan is calculated based on the amount that you owe.

Banks base the amount that you need to pay monthly by using an “amortization formula”. By using such formula you would be able to repay your loan and all its interest upon loan maturity. Here is a rough calculation based on the figures above.

Monthly Repayment = P3,725

Interest: P1,650 (P500,000.00 x .33% = P1,650.00)

Principal: P2,075 (P3,725 – 1650 = P2,075) Leftover after paying the interest

By the 2^nd month the loan balance will be:

P500,000 – P2075 = P497,925

P497,925 x .33% = P1,643 (2^nd month’s interest payment)

Note: Rate of interest is also subject to monthly tax and insurance

Love this post? Want to learn more about home loan? Check out our post on the things that affect your home loan interest rate.

The post How Do Home Loans Work? appeared first on iMoney.ph.

Kalimitan, madali lang malaman ang proseso ng home loan at ang interest rates ng mga bangko, pero hindi naman ito naipapaliwanag ng mabuti. Kahit na hindi ganon kadali intindihin ang housing loan, hindi rin naman imposible na mauunawaan ito. Sa ibaba, susubukan naming ipaliwanag ang ilang mahahalagang mga termino tungkol sa housing loan:

Prinsipal  ng isang Housing Loan

Ang principal ng housing loan ay ang halaga ng perang hiniram at hindi pa nababayaran. Para sa housing loan, ang interest ay karaniwang pinapataw dito sa halaga ng principal.

Housing Loan Interest Rate

Ang mga interest rates ng housing loan sa Pilipinas ay karaniwang kinakalkula bilang porsyento na mas mababa kaysa sa Prime Lending Rate (PLR). Halimbawa, kung ang PLR ay 6.6%, ang interest rate sa isang “BLR – 2.5%” ang loan interest rate ay 4.1%

Loan Tenure

Ang loan tenure ang pinagkasunduang haba ng panahon ng pagbabayad ng housing loan. Sa Pilipinas, ang loan tenure ay mula 10 hanggang 20 na taon.

Isang Halimbawa

Ipagpalagay natin na kukuha ka ng home loan na P 2,000,000 sa loob ng 20 taon, at ang interest rate mo ay “PLR – 2.4%” Ipagpalagay din natin na ang PLR ay 6.6% (sinasabi lamang dito na ang interest rate ng iyong home loan ay 4.2%)

Illustration:
Home Loan Amount: P 2,000,000
Interest Rate: 4.2% per year
Loan Period: 20 years

Interest Calculation

Ang interest sa lahat ng home loan sa Pilipinas ay buwanan ang pagkalkula. Sa halimbawang ito, ang 4.2% na taunang interest ay pumapatak na 0.35% kasa buwan, dahil 4.2% ay hinahati sa 12.

Pagdating ng unang buwan na pagbayad ng iyong home loan, pagkinalkula mo kung magkano ang kailangan mo bayaran kada buwan, ang interest rate na 0.35% sa principal loan na P 2,000,000, ay equivalent sa P7,000 para sa unang buwan.

Pagkalkula Sa Iyong Monthly Repayment

Kahit na ang interest charge mo ay P7,000 sa unang buwan, karaniwang hinihingi ng bangko na magbayad ka ng higit pa sa P7,000 bawat buwan. Ang extrang bayad na ito ay napupunta sa pagbawas ng iyong loan principal (kung magkano ang hiniram mo sa iying home loan).

Dahil ang interest ng home loan ay kinakalkula base sa kung magkano ang nahiram mong pera, sa pamamagitan ng pagbayad ng kakaunting extra sa iyong unang buwan, ang interest ng iyong loan para sa pangalawang buwan ay bababa ng kaunti.

(pic)

Sa halimbawang ito, ang interest payment para sa pangalawang buwan ay P 6,987,22  (P1,996,350 x .35%)

Sa pag-kalkula ng buwanang halaga na kailangang bayaran, ang mga bangko ay gumagamit ng espesyal na formula na kung tawagin ay  “amortization formula.” Kinakula ang buwanang halaga para kapag nakabayad ka na ng huli mong  bayarin, nabayaran mo na ang kabuuan ng iyong loan, pati na ang lahat ng interest.

Ang halaga ng monthly repayment ay karaniwang di-nagbabago sa kabuuan ng termino ng iyong loan, maliban na lamang kung may pagbabago sa Base Lending Rate (kung saan naka-base ang interest rate).

Nagustuhan mo ba ang artikulong ito? Gusto mo pa bang matuto tungkol sa home loan? Tignan ang aming artikulo tungkol sa Bagay na nakaka-apekto ng interest rate ng iyong home loan.

The post Paano Ang Proseso Ng Home Loan? appeared first on iMoney.ph.

A house is probably one of the biggest investments that you will ever make in your entire life. It’s a very exciting and joyful but tedious process. It requires a lot of careful decision making and a single lapse in judgement could lead you to a pile of debt. iMoney is here to help you make the right decisions by providing you with everything you need to know about housing loans. This article aims to provide you with the most in-depth information on home loans in the Philippines. So let’s get the ball rolling shall we?

2 Types of Home Loans in the Philippines

Borrowers in the Philippines have two options when it comes to home loans. The first one is the Conventional Home Loan and second one is the Flexible Home Loan or commonly known as a flexi-loan.

What is a Conventional Home Loan?

A Conventional Loan requires a borrower to make fixed monthly payments for a specific term or period. Philippine banks provide their clients home loans with a loan tenure of up to 20 years for a minimum of P500,000. This type of repayment scheme enables a borrower to properly manage his finances because the payments are predictable.

What is a Flexible Home Loan?

Flexi loans are conventional loans that are tied or linked to a current account. Borrowers can reduce their home loan interest every time they deposit cash to their current account. Excess payments can also be withdrawn anytime without giving the bank any notice. Borrowers can also start their principal repayment anytime they want.

Home Loans Interest Rates in the Philippines

Housing loan interest rates in the Philippines are influenced by the BSP’s (Bangko Sentral ng Pilipinas) key rates. The current base lending rate is recorded at 6%. This means your interest will be 3.5% on a (BLR-2.5%) loan.

However, home loans interest rates vary and are subject to withholding tax and additional charges. Borrowers should also be aware that there is an annual re-pricing so the interest rates will increase every year unless they choose to lock it. BDO (Bangko de Oro) offers an interest rate of 7.88% on the first year, 9.75% for 3 years, 10.00% for 5 years, 11.00% for 11 years, 11.25% for 15 years and 11.50% for 16 to 25 years.

Rate Lock-Ins

A penalty of 2% is usually charged on the original loan amount by some banks, this occurs if you fully repay your debt before the maturity date. However this varies on a case by case basis since most of the banks in the Philippines have annual re-pricing schemes. Some banks give their clients the option to lock the interest rate for 1-10 years. The monthly amortization can be easily predicted in the coming years if a borrower chooses to lock the interest rate.

Say for example you have a P1,000,000 loan which is payable for 10 years you can get a low rate of 5.75% on it and just pay P10,977 monthly. However, borrowers will be facing higher interest rates in the coming years if they choose to go with yearly re-pricing. So if the interest goes to 8.00% from 5.75% the borrower will pay P12,026 instead of just P10,977.

Margin of Financing and Margin of Loan: Factors that affect the loan amount

There are several factors that influence the loan rate. Banks in the Philippines base the amount that a client can borrow on the age and income bracket of the applicant, property type and location and the current value of the property on the market. The maximum margin of loan that banks would lend up to is between 80% and 90%. So if you are going to apply for a housing loan to finance a P1,000,000 home in a key location in Manila you are eligible for a loan amounting to P800,000 or P900,000.

Read the second article to get more information about mortgage loans!

The post Things You Should Know About Home Loans In The Philippines – Part 1 appeared first on iMoney.ph.

This article is a continuation of the previous article titled: Home Loans in the Philippines – Part 1

In the previous article we discussed the basics of acquiring home loans in the Philippines. So let us now proceed to how much you should borrow or can borrow to finance that dream home.

Am I Financially Capable? Can I Afford Home Loans?

Banks in the Philippines are more than willing to lend you money to help you buy your dream home but first you need to prove your financial capability and submit the required documents. If you qualify for home loans you can borrow up to 80% of the property’s value. So to give you an idea here are the things that determine your eligibility for a housing loan in the Philippines.

Income Bracket/Salary – Banks base your financial capability on how much you are earning. Banks basically take on fewer risks by lending to high earning clients. The higher your annual pay is the higher are the chances of getting a home loan.

Amounts of Debt Owed – Banks will check your credit history, if you can keep up with your payments then you are more likely to get approved. If you have tons of debt like personal loans, credit cards and car loans and you are having a hard time paying for all of them banks will reject your application.

Your Savings – Having a savings account or a current account you can link to your home loan can be advantageous to your situation. If you have a savings account this proves that you have a good credit standing. The rule of thumb is that your monthly amortization should not exceed 30% of your gross income. There is another way to determine if you can afford a housing loan and this is by getting your DSR or your Debt Service Ratio. The formula to get your DSR is DSR = monthly debt repayment obligations/your take home pay per month. In the Philippines the acceptable DSR is 50%, as set by the BSP (Bangko Sentral ng Pilipinas).

Okay, now that you have an idea if you can afford a home loan or not the next thing you should do is to decide the amount you should borrow. Well, this depends on your needs but the most important thing that you should always remember is to only borrow an amount you can actually pay for. If you borrow more than you can afford you might end up being knee-deep in debt. And if you plan to take up short-term loans you should be aware that you will be paying higher installments each month. You need to know how much interest rates you can afford. Refer to the previous articles to determine the factors that determine your home loan interest rates.

You think you are capable of applying for home loans? Now it’s time to find the right one. You can use our comparison table to find the best one.

The post Things You Should Know About Home Loans In The Philippines – Part 2 appeared first on iMoney.ph.

Eto na ang pagpapatuloy ng Basics Ng Housing Loan Sa Pilipinas – Part 1.

Sa unang bahagi, ipinaliwanag natin ang ilang mahahalagang termino na makatutulong sa ‘yo na maunawaan ang sistema ng housing loans sa Pilipinas.

Ngayon, pag-usapan naman natin kung magkano ang maaaring o dapat na hiraming pera para mabili ang iyong dream house.

Magkano Ang Kaya Ko?

Hangga’t sa pasok ka sa ilang mga batayan, malimit na nagpapahiram ang mga bangko ng hanggang sa 90% ng halaga ng iyong bahay. Para malaman kung magkano ang ipapahiram ng bangko sa isang umuutang, ang mga sumusunod ay ilang bagay na kanilang pinagaaralan:

1. Magkano ang iyong kinikita  – kapag mas mataas ang iyong kinikita, mas madali kang makakakuha ng housing loan mula sa bangko. Kung mas malaki ang kinikita mong pera, syempre mas may abilidad kang mabayaran ang loan (at mas kampante ang bangko).

2. Mga kasalukuyan mong utang  –  Ang ilang mga halimbawa ay car loan, personal loan at credit cards. Mas madaming utang, mas mahirap na kumuha ng house loan mula sa bangko.

3. Magkano ang savings na meron ka – muli, kung mas malaki ang halaga ng iyong savings, mas madaling makakuha ng housing loan.

Para malaman kung magkano ang kakayahan mong magbayad, siguraduhin na ang babayaran mong buwanang home loan ay hindi hihigit sa ikatlo ng iyong kinikita.

Isa pang paraan upang matiyak kung magkano ang halaga ng kaya mong bayaran, ay ang pag kakalkula ng iyong Debt Service Ratio (DSR). Ganito ito ginagawa, i-divide ang iyong buwanang bayad sa inutang na loan, sa iyong buwanang kinikita. Sinasabing hindi dapat lumagpas ang iyong Debt Service Ratio (DSR) sa 30-50%.

Ngayong alam mo na kung magkano ang kaya mong bayaran, and susunod na tanong ay — magkano ang dapat mong hiramin?

Mahirap masagot ang tanong na ito. Walang tama o maling sagot. Ngunit, hindi ka dapat umuutang ng wala kang kakayanang magbayad. Isa pa, dapat handa kang magbayad ng mas mataas na monthly instalment kung ang pipiliin mong home loan ay mas maikli ang termino ng bayaran, o kaya naman kung pinili mo ang mas mataas na margin of financing (kung ‘di mo maalala kung ano ito, tignan ang Part 1 nito).

The post Home Loan Basics sa Pilipinas – Part 2 appeared first on iMoney.ph.

When applying for a housing loan you always look for a bank that offers a loan policy with the lowest interest rate. However, in the Philippines there are a number of factors that influence the interest rate of your housing loan.

In 1981, interest rates were fixed by the BSP (Bangko Sentral ng Pilipinas). Today the supply and demand for funds in the market and inflation influence the interest rates charged by various banks. The last recorded benchmark interest rate in the Philippines was at 3.50%.

Prime Lending Rate (PLR)

The PLR is a reference rate of interest that banks use to price the loan products they offer. The PLR takes into account a bank’s cost of operating, and is similar across banks. Over time, If the PLR increases or decreases, interest rates charged by banks would also increase or decrease by a similar amount.

Re-pricing Period

The interest rate can also be influenced by the re-pricing period. The amount of interest rates varies depending on the amount of the loan – the higher the amount the higher the interest rate. Allied Bank charges 8.50% for 1 year and the rate goes up to 9% at two years. For a span of 15 years the rate will reach 11.50%.

But what is a re-pricing period?

This is the time frame at which the interest rates are constant. After the re-pricing period the rate of interest will adapt to market changes or for any reason Philippine banks want to change the rate. For instance, if you get a loan term of 10 years for a housing loan with a re-pricing period of 1 year the interest rate will constantly change every year for the entire term of your loan.

Other Factors That Determine Your Housing Loan Interests

Another important factor is your credit history. Your lender will check your credit history before they process your application. If they think you are high risk they will charge you with higher interest rates to compensate for the risks. The lender will take into consideration your borrowing and repayment history to determine if you are capable of repaying the loan amount you are applying for. The lender will also determine how much interest rate you can take on based on your credit score. A perfect credit history and a stable income will help you get lower interest rates for your home loan.

Another important factor is your loan term; short-term loans provide a borrower with the lowest interest rates because short-term market conditions are predictable. And since long-term economic conditions like inflation and interest rate fluctuations are quite difficult to predict long-term loans are charged with higher interest rates. The amount that you will borrow will also play a huge role in determining the rate of interest. This basically means the more you borrow the stronger your bargaining power will be.

Location is an important factor as well. Banks weigh the risks that they need to take based on your property’s location. Say for example a property that is located in a place that is growing will pose less risk to the lender. If your property is in a key location it will have a higher appraisal. Borrowers living in key locations are more likely to become profitable in the future which means they can repay their loan without any problems and this is very appealing to lenders.

Are you a loyal and profitable client?

Banks care about their clients and they want to provide the best products and services as much as possible. Unfortunately, they are also profit-driven and you will have higher chances of getting good interest rates for your housing loan if you are one of their most valued customers. Say for example you have car loans, credit cards and a savings account from the same bank you’re going to apply for a housing loan, you will be prioritized and you will get offered with very low interest rates since you avail most of their products.

Like this article? You might want also want to get to know more about mortgage loans!

The post Factors That Affect Housing Loan Interest Rates in the Philippines appeared first on iMoney.ph.

Noong nakaraa, napag-usapan natin kung paano nasasabi ang home interest rate sa Pilipinas. May ilang mga bagay na nakakakapekto sa interest rate ng iyong home loan. Ilan dito ay mga bagay na wala sa iyong kontrol (halimbawa ang ekonomiya), at may ilan din na tahasan kang may kontrol (katulad ng iyong credit score).

Tignan nating mabuti ang ilan sa mga ito:

Prime Lending Rate (PLR)

Ang PLR ay isang rate kung saan binabase ng mga bangko ang kanilang desisyon kung magkano ang ipapataw na interest sa iba-iba nilang mga produkto.

Tinitignan ng rate na ito ang iba’t ibang factor tulad ng kung magkano ang ginagastos ng mga bangko sa operasyon nito, at kalimitan, magkapareho ang rate na ito sa mga malalaking bangko.

Sa Piliinas ang home loan ay karaniwang kinakalkula bilang porsyento sa itaas o ibaba ng PLR. Ibig sabihin nito, ang PLR ay tumataas o bumababa ng isang partikular ng halaga, ang interest rates na pinapataw sa floating rate home loans ay tumataas o bumababa din sa parehong halaga.

Ang Re-Pricing Period

Ang interest rate ay naapektuhan din ng haba ng panahon ng pagkumpleto sa bayad ng loan at ng re-pricing period. Ang re-pricing period ay ang panahon kung kailan ang interest rates ay hindi nagbabago. Matapos ang re-pricing period, ang interest rate ay magbabago depende sa pagbabago ng merkado at iba pang interest rate na babaguhin ng mga bangko sa Pilipinas. Halimbawa, ikaw ay mayroong 10 taong loan term para sa isang pa-bahay na may re-pricing period na isang taon, ang interest rate ay lagi nang magbabago taon-taon hanggang sa matapos ang loan. Mas malaki ang interest rate na kaakibat ng mas matagal na re-pricing period. Halimbawa, ang Allied Bank ay naniningil ng 8.50% para sa isang taong re-pricing at ang rate ay umaabot ng 9% sa loob ng dalawang taon. Sa loob ng labing-limang taon ang rate ay aabot ng 11.50%.

Your Personal Credit Profile / Credit Score

Ang iyong personal credit profile o credit score ay mahalaga dahil ito ay nagdidikta kung kwalipikado kang makakuha ng home loan o hindi, pati na rin kung magkano ang halaga ng interest na ibibigay sa ‘yo ng bangko.

Karaniwan, dalawang bagay ang tinitignan ng mga bangko: ang iyong “credit worthiness” at kung gaano ka taas ang iyong kinikita. Para ma-enjoy ang mas mababang home loan rates, kailangang mayroon kang magandang credit profile, at magandang income.

Ang Mga Termino Ng Iyong Home Loan

Ang interest rate ng iyong home loan ay naka-depende sa iba’t ibang termino ng iyong loan.

Home Loan Amount – Sa pangkalahatan, kapag mas malaki ang iyong hiniram, mas mas mababa ang interest rate sa iyong home loan.

Home Loan Insurance – May ilang bangko na nagbibigay ng diskwento kung kukuha ka ng mortgage insurance kasabay ng iyong loan. Itong mga insurance na ganito ay nakatutulong na mabayaran ang naiiwang halaga ng iyong loan, kung may ikaw ay mamatay o mabaldado. Sa mata ng bangko, mas hindi ka delikadong pahiramin ng pera kung gayon.

Lokasyon ng iyong Bahay

Ang interest rate ng iyong home loan ay naka-depende din kung saan nakapwesto ang iyong property. Ang kadahilanan dito, ay hindi lahat ng lokasyon ay kapareho ng panganib na idinudulot sa bangko.

Ang isang lugar na lumalago ay nagkakaroon ng pagtaas sa presyo ng mga property, at ito ay magiging mas mabuti para sa bangko. Habang tumataas ang presyo ng property, ang mga nanghihiram ng pera mula sa mga lokasyong ito ay lalong “yumayaman” at dahil dun, mas maliit ang posibilidad na hindi sila magbabayad.

Isa Ka Bang Profitable Customer?

Tulad ng madaming businesses, ang mga bangko ay naglalayong kumita. Kung marami kang produkto ng bangko (tulad ng current account, credit cards, car loans) mula sa isang bangko, mas malaki ang posibilidad na mabibigyan ka ng magandang offer sa iyong home loan (‘di tulad sa ibang bangko).

Kung interesado kang malaman kung aling bangko ay may pinakamagandang housing loan interest rate? Tignan ito!

The post Bagay Na May Epekto Sa Housing Loan Interest Rate appeared first on iMoney.ph.

When you borrow money from a lender the amount is usually charged with an interest rate. This rate is the amount charged or paid for the use of money; it is often expressed as a percentage per annum of the principal.

BSP (Bangko Sentral ng Pilipinas) had set key policy interest rates at 4% for overnight borrowing. For base lending the rate is steady at 6%.

Banks in Manila had recently slashed their home loan rates. Some banks offer loans with interest rates for as low as 5.75% because of the property boom. However, clients that subscribed to low payments with fixed rates for a year will be affected by inflation and a possible hike in BSP’s key rates because of re-pricing. HSBC began the trend by offering an interest rate of 5.88%. They reduced this rate to 5.75% to have an edge in the market. However, these “teaser” rates are only good for 1 year since there will be a re-pricing after one year.

Banks like BDO, PSBank and BPI have interest rates above 7%. For a one-year home loan BDO is offering an interest rate of 7.88%. PSBank’s interest rate is at 8.5% while BPI’s rate is at 8.75%. Borrowers should keep in mind that these rates are not fixed and subject to annual re-pricing. Adjustments are made yearly and they might be higher than the previous year.

Fixed And Variable Interest Rates

Fixed interest rates remain the same throughout the entire loan term and they are not affected by market interest rates. Your loan duration will determine whether a fixed interest rate home loan is good for you or not.

If the interest rate charged on an outstanding balance of a loan change along with the current market interest rates then it is a variable interest rate loan. Most of the home loans provided by banks in the Philippines are subject for re-pricing each year with a fixed interest rate for 1 year. Borrowers in the Philippines have the option to lock in a lower rate for 1-5 years but this varies widely from bank to bank.

For example, you borrowed P12,000,000 and you want your interest rate of 5.75% to be fixed for 3 years and your loan term is 15 years, your monthly amortization will be P99, 649.21.

Rates depends per bank and PAG-IBIG Housing Loans.

How to calculate the interest rate on your housing loan?

Home loan interest rates in the Philippines are usually calculated on a monthly basis; most banks will only provide detailed computations for walk-in clients.

In some banks the interest rates are calculated on a daily basis. Say for example:

A home loan with an outstanding balance of P13, 077,012.50 at 7% interest is due every 26th of the month. However, repayments of P122, 025 are made on the 25th of each month.

P13, 077,012.50 x 7% divided by 365 days = P2508.02 per day

P2, 508.02 is calculated every day from the 26^th of August 2013 until the 24^th of September 2013, a span of 30 days. P2, 484.43 is calculated for 1 day of 25th September because a payment of P122, 025 was made to the loan which brings down the balance to P12, 954,987.50 for that day. The total interest charged to the loan for this month is (P2, 508.02 x 30) + P2, 484.43 = P77, 725.04. The amount of interest varies in some months because the number of days in each month varies and the interest is calculated on a daily basis not on a monthly basis.

We provide you a computation, even if you don’t want to go to your bank. Check out our housing loan comparison table!

The post Housing Loan Interest Rates In The Philippines – Explained appeared first on iMoney.ph.

Noong nakaraan, napag-usapan natin ang housing loan interest sa Part 1 ng Panimula sa Home Loans. Kapag ikaw ay nanghiram ng pera sa mga nagpapautang, ang halaga ng inutang ay kalimitan ng pinapatungan ng interes. Ang interes na ito ay ang tubo o bayad sa paggamit mo ng pera; ito ay kadalasang kinakalkula bilang porsiyento kada taon ng nagpautang

Bagaman ang BSP (Bangko Sentral ng Pilipinas) ay nagtalaga ng pamantayang rate na 6% sa pagpapautang, ang interest rate sa pabahay na inaalok ng mga bangko ay maaaring magkakaiba sa ibang bangko sa magkakaibang panahon.

Kamakailan, ang mga bangko sa Maynila ay nagbababa ng kanilang rates sa pabahay. Ang ilan sa mga bangko ay nagbaba ng rates hanggang 5.75% dahil sa pagdami ng mga nagbebenta ng real estate property. Gayunman, ang mga kliyente na tumangkilik ng mababang presyo na may fixed rates ng isang taon ay apektado ng pagtaas ng presyo ng bilihin at ng posibleng pagtaas ng key rates ng BSP dahil sa taunang re-pricing. Ang HSBC ay nagpasimula sa pagbibigay ng interest rate na 5.88% ngunit ibinaba nila ito ng 5.75% upang makasabay sa merkado. Gayunman, ang mga “pakulo” na pagbaba ng rates ay maganda lamang sa loob ng isang taon dahil sa pagkakaroon ng re-pricing sa susunod na taon.

Ang mga bangko tulad ng Banco de Oro (BDO), Philippine Savings Bank (PSBank) at Bank of the Philippine Islands (BPI) ay may interest rate na 7.88%. Sa kabilang banda, ang PSBank ay may interest rate na 8.5% habang ang BPI naman ay 8.75%. Ang mga mangungutang ay dapat laging alalahanin na ang rates ay hindi fixed at nagbabago dahil sa taunang re-pricing. Ang pagbabago ay nagaganap taon-taon at maaaring tumaas kumpara sa naunang taon. Dapat lamang na isaalang-alang hindi lamang ang unang interest rates kundi pati na rin ang pagtaas ng rates pagkatapos ng unang re-pricing period.

Fixed Interest Rates

Maaari mong panatilihin ang interest rates sa mas matagal na panahon sa pagpili ng mas mahabang taon ng re-pricing period. Ang interest rates ay hindi magbabago sa loob ng ilang taon ngunit ang mahabang re-pricing periods ay mas malaki ang interest rates. Ang pagkakaroon ng fixed interest rate sa pabahay ay magiging maganda o hindi para sayo depende sa haba ng taon na matatapos mo ang loan.

Ang Iyo bang Interest ay Kinukwenta ng Kada-araw o Kada-buwan?

Ang batayan ng interest rates ng utang para sa pabahay ay kalimitan ng tinutuos buwan-buwan sa Pilipinas, gayunman may mga bangko na binabatay ang pagkwenta ng interes rates kada-araw.

Mahalagang malaman na ang pagkwenta ng interes batay sa araw-araw ay mas makakatulong sayo sa pagbawas ng mas malaking interest charges.

Halimbawang mayroon kang loan na magsisimula ng Abril 2013 at ito ay P450,000 na may interest rates na 1% kada buwan.

Ikaw ay kailangang magbayad ng P5,000 kada-buwan.

Para sa Monthly Interest:

Sa Abril 10, nagbayad ka ng P5,000 na may kasamang monthly interest na P4,500 (1% ng P450,000) at paunang bayad na P500.

Para sa Daily Interest:

Sa Abril 10, nagbayad ka ng P5,000

Mula Abril 1-10, ang daily interest rate ay 0.0333% (1% / 30 days), at ang interest charge ay P1,499.99 (0.0333% x 10 days x kabuuang utang na P450,000)

Ang natitirang P3,500.01 ang magiging paunang bayad.

Mula Abril 11-30, ang iyong interest charge ay P2,973.69 (0.0333% x 20 days x natitirang kabuuang utang na P446,499.99)

Samakatuwid sa buwan ng Abril,  ang halaga ng iyong interest charges ay P4,473.68 habang P526.32 ang napupunta sa pagbabayad ng kabuuang utang.

Conclusion

Sa pagbayad ng mas maaga para sa isang buwan, ang paggamit ng daily interest ay makakatulong sa nangutang dahil hindi lang nito nababawasan ang interest payments, napapalaki pa nito ang nababayaran sa kabuuang utang. Alamin ang iyong pagpipilian gamit ang aming home loan comparison table.

The post Housing Loan Interests Sa Pilipinas – Paliwanag appeared first on iMoney.ph.

There are 2 types of housing loans available to borrowers in the Philippines;

1. Conventional Housing Loans and
2. Flexible Home Loans

Most of the Filipino borrowers planning to finance their dream homes go for conventional housing loans. This type of loan requires a borrower to pay back the amount borrowed together with an interest for a particular loan term. The borrower can choose between fixed or variable interest rates. These interest rates are influenced by a lot of factors like BSP (Bangko Sentral ng Pilipinas) key rates, inflation and supply and demand.

Flexible housing loans on the other hand provide flexible payment schemes. This type of loan is normally tied to a current account. With this type of account a borrower doesn’t have to worry about missing a payment due date since the loan is linked to his current account and the monthly loan instalment will be automatically deducted from the linked account.

Planning to refinance or renovate your home on a tight budget won’t be too difficult in the Philippines because there are plenty of options available. For example, HSBC offer home loans with flexible repayment terms. The minimum amount that you can borrow is P700,000. Repayment schemes of monthly and fortnights are also available. BDO (Bangko de Oro) Super Value Home Loan Program provide borrowers with an option to lock their interest rates for up to 5 years. Landbank of the Philippines also offer housing loans that can be paid up to a maximum of twenty years. Borrowers can also opt for a ten year fixed rate repayment term.

Here are your other options if you are planning to apply for a home loan in the Philippines:

SSS Home Loan – An SSS (Social Security System of the Philippines) member or an OFW (Overseas Filipino Worker) not older than 65 years old can qualify for this type of loan provided he has contributed for the past twelve months without missing a single payment. SSS provides socialized housing loans at P300, 000 and low-cost housing loans between P500, 000 to P1, 000,000. This type of loan has a repayment term of 5-30 years with an interest of 9%-14% per annum depending on the amount of the loan granted to the recipient.

PAG-IBIG Overseas Program – This is a savings program that provides an OFW with funds for future home financing. To qualify for a bigger loan amount you need to make a monthly contribution of at least P750. The borrower also has the option to withdraw his contribution after 5, 10, 15 or 20 years. By being a PAG-IBIG member you will be entitled to apply for housing loans, multi-purpose loans and dividends.

There are many alternative housing loan options in the Philippines, make sure you explore all your options and understand loan’s terms and conditions before signing an agreement.

The post What Are Your Options For Home Loans In The Philippines? appeared first on iMoney.ph.

Dahil madaming mga bangko dito sa Pilipinas ang nagbibigay ng home loan, hindi nakagugulat na madaming tao ang nahihirapang maintindihan ang iba’t ibang klase ng home loans.

Conventional Home loan

Ang conventional home loan ay ang pinakakaraniwang kinukuha ng marami. Sa conventional home loan, ang humihiram ang pera ay sumasangayon na bayaran ang loan amount kasama ng interest sa sa isang nakatakdang haba ng panahon.

Karaniwang nagpapataw ang bangko ng 1) fixed o 2) variable interest rate sa mga conventional home loans (o kumbinasyon nitong dalawa). Karamihan sa mga home loan sa Pilipinas ay variable interest rate loans, kung saan nakatali interest rate sa Prime Lending Rate (PLR) ng mga bangko.

Flexi Home Loan

Dahil nagbabago na ang panahon at umiinit ang kumpetisyon, ang mga bangko ay napipilitang gumawa ng mga bagong home loan products. Ito ang nagbigay daan para sa mga flexi home loan products.

Tulad ng sinasaad sa pangalan nito, ang flexi home loan ay nabibigay ng karagdagang flexibility sa mga humihiram ng pera. Ang flexi home loan ay isang home loan na nakakabit sa isang current account. Sa flexi home loan, ang humihiram ay may kapangyarihan na mag withdraw o magbigay ng karagdagang bayad kahit kailan, na hindi kailangang ipaalam sa bangko.

Ang flexi home loans ay bagay sa mayroong mga extra cash flow. Sa bawat buwan, ang loan installment ay automatikong binabawas sa linked current account, at ang balanse ay mapupunta sa pagbawas ng halagang kulang na kailagan bayaran. Interesado ka ba makakuha ng home loan, tignan ang aming home loan comparison table.

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A mortgage loan is a type of loan that requires collateral to secure the amount borrowed from a lender. In this case the house or the property of the borrower acts as collateral, the lender provides the borrower with funds and in any event the borrower fails to pay back the loan within a specific period the lender can repossess the property used as collateral. A mortgage loan agreement will also include an interest on the principal amount so the borrower must pay the interests along with the total loan amount before the maturity date in order to prevent his property from being repossessed.

To make things a lot simpler, The Debtor/Borrower (You) will agree to make monthly payments with interest to your creditor/lender (example: bank) in exchange for cash to fund your property purchase. The lender will own full rights to you property (used as collateral) if you fail to repay your debt.

Where Can I Get a Mortgage Loan?

There are a lot of reliable mortgage lenders in the Philippines. You can get good deals from banks, unions, cooperatives and even non-profit organizations that provide loans for people living in the Philippines. However you have to keep in mind that to qualify for this type of loan you need to have good credit standing to convince your lender that you are financially capable of repaying the debt.

Banks

If you are planning to get a loan through a Philippine bank you need to keep yourself up to date with the current interest rates. Today the annual interests are between 5%-10%. You can get a mortgage loan from banks like Philippine National Bank, BDO, Metrobank, Landbank, HSBC and Union Bank. Visit your local banks to see which of them can provide you with the lowest interest rates.

A lot of people prefer to get their mortgage loans through banks because it is a lot more convenient for them. Applying for a loan directly from your local bank also lowers your costs since you won’t need to pay for additional fees or commissions.

Mortgage Broker

The job of a mortgage loan broker is to compare different housing loan packages. They are the middleman between the borrower and the lender, but they generally act in behalf of the lender. Mortgage loan brokers have a wider scope of the market and not biased toward any banking institution. Their product is information and will give you expert advices to help you choose the loan product that will best suit your needs.

Mortgage brokers will get in touch with banks and other lending institutions within their network in order to provide you with the lowest interest rates and the best products. In return you will need to pay them their commission.

Local Government Units, Cooperatives and Unions

Another option is through unions and cooperatives. FICCO provides Filipino citizens with different types of loans like appliance loan, commercial loans, motorcycle loans and even housing loans. PAG-IBIG also offer loans at 4.5% per annum and the loan amount starts from P400, 000 to P3, 000, 000. You can also acquire a mortgage loan through SSS housing loan. Loans from SSS are no longer subject for review every 5 years and the minimum amount you can borrow is P400, 000 with an interest of 8% per annum. NHA (National Housing Authority) Cooperative Pabahay Program is also capable of granting borrowers with mortgage loans.

You want to apply for a mortgage loan know? You can compare possible home loans for the Philippines with our comparison table.

The post What Exactly Is A Mortgage Loan? Where Can I Get One? appeared first on iMoney.ph.

Ano Ang Mortgage Loan?

Ang mortgage loan (o karaniwang tinatawag lang na  “mortgage”) ay isang loan na ginagamit upang bumili ng mga bahay at iba pang mga ari-arian. Sa isang mortgage loan arrangement, ikaw (ang humihiram ng pera) ay nagbibigay sa nagpapahiram ng pera (karaniwan, mga bangko) ng karapatan sa isang ari-arian, hangga’t sa mabayaran mo nang buo ang mga kailangang bayad, at pati na ang interest.

Samakatuwid, kapag gumamit ka ng mortgage para bumili ng bahay, kumukuha ka ng loan para bumili ng bahay. Ang loan na ito ay sinisiguro ng bahay na iyong binibili, ito ang ginagamit bilang garantiya sa iyong loan. Sa pagkakataon na mahuli ka sa buwanang pag-bayad, ang nagpahiram ng pera ay may karapatan na kunin muli ang iyong bahay.

Maraming tao ang sumasalalay sa mortgage para matulungan silang makabili ng ari-arian (kakaunti lang ang mga taong nakakabili ng property gamit ang direktang cash).

San Makakakuha ng Mortgage?

Kung nagbabalak kang bumili ng ari-arian, may ilang mga paraan para makakuha ka ng mortgage. Tulad ng mortgage brokers at bangko.

Ang mga importanteng pagkakaiba ng tatlong ito ay ang kanilang interest rate, loan amount at ang maturity period ng mga loans. Tignan natin ngayon ang mga detalye:

Pagkuha Ng Mortgage Loan Mula Sa Bangko

Ang pakikipag-usap sa mga bangko, ang pinaka-pinipiling paraan ng karamihan. Ang loan officer ang tumutulong sa iyo sa proseso ng iyong mortgage application.

Sa pangkalahatan, mas kaunti ang karagdagang bayad o komisyon kapag nag-apply ng mortgage diretso mula sa bangko. Dahil walang tagapamagitan sa gitna mo at ng  bangko, ang cost ay nababawasan (ang mga taong nagtratrabaho sa bangko ay mas kaunti ang dahilan na dagdagan ang kailangan mong bayaran, dahil sila ay swelduhan, na hindi naman kumikita sa komisyon kung ma-aprubahan ang iyong loan).

Dahil d’yan, kung ikaw ay may magandang credit history, may maganda kang trabaho, at may stable na income at meron ka ding financial assets, wala namang problema na makakuha ng mortgage loan mula sa bangko.

Pagkuha ng Mortgage Sa Pamamagitan ng Mortgage Broker

Ang mga mortgage brokers ang gumaganap ng papel na pagiging “middle man” sa isang mortgage transaction, at nagbibigay ng abiso sa iyo, kung ano ang pinakamagandang loan para sa iyo. Hindi sila ang aktwal na nagpapahiram ng pera, sa halip, sila ang nagtratrabaho bilang representante ng tagaghiram ng pera. Samakatuwid, magkaiba ang mortgage broker sa mortgage lender tulad ng bangko.

Kung ikaw ay naghahanap ng isang mortgage broker, kailangan lagi mong isipin na ang mga pinakamagaling na mortgage broker ay ang mga nagtratrabaho para sa maraming mga mortgage lenders. Mahalaga ring masigurado na mahusay ang experience nila at pati na ang kanilang track record. Ang magagaling na mortgage brokers ay karaniwang may kaalaman tungkol sa industriya, ang pamilyar sa mga iba’t ibang klase ng mortgage loans. Ang paghahanap ng isang magaling na mortgage broker ay makakatulong na mauunawaan mo ang mga pinakamagandang deal base sa iyong sitwasyong pinansiyal at credit history.

Ang isang mahusay na mortgage broker ay makakatulong din sa iyo sa proseso ng aplikasyon — kalimitang mas madali mag apply ng mortgage sa pamamagitan ng broker, dahil ang mga broker ay may magandang network at relasyon sa mga bangko, at iba pang mortgage lenders. Lalo na kapag ikaw ay may hindi kagandahang credit hostory, o kaya naman hindi stable ang kita mo ng pera. Ang mga mortgage brokers ay nakakatulong na makakuha ka ng loan, kahit tinaggihan na ang bangko ang iyong aplikasyon. Tandaan lang na ang ganitong klaseng loan ay kalimitang may mas mataas na interest rates.

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It’s never too early or too late to open your first bank account. In the Philippines, retail customers have access to savings account provided by Philippine banks. Philippine savings accounts offer higher (but still negligible) interest rates compared to checking accounts. However, clients can liquidate their funds on demand. Savings accounts offer lower rates of return than time deposits since the interest rate of time deposits are fixed and the funds cannot be liquidated until maturity.

Nevertheless, a savings account can be quite advantageous because a client’s money can be kept safe from theft. What if the banks fail? In the Philippines all savings accounts are insured up to P500,000 by the PDIC (Philippine Deposit Insurance Corporation). PDIC is the governing body that insures all depositors in the Philippines. The normal interest rate for savings accounts in the Philippines is between 0.25% – 0.50% per year depending on the type of account opened.

What are the Advantages of Opening a Savings Account?

• Good foundation of wealth for the future
• Provides you with an emergency source of funds
• Positive contributor to credit standing

What are the requirements needed to secure a savings account in the Philippines?

• 2 Valid IDs with your name and your picture
• 2 Photocopies of your Valid IDs
• Billing Statement for address verification (Telephone bill, Credit Card bill, Electric bill, etc.)
• 2 copies of recent 1×1 ID picture

Acceptable IDs for opening an account in the Philippines are: Passport, PRC ID, NBI Clearance, Driver’s License, Police Clearance, Postal ID, SSS ID, OWWA ID, Alien Certification of Registration or Immigrant Certificate of Registration and other IDs issued by the Philippine Government.

Conclusion

Our future entirely depends on our stored resources. We can establish a concrete foundation for our future if we start saving, and the easiest way to initiate this is to put money away in a savings account. Open a savings account and start saving today!

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Maraming tao ang hindi nag-iipon ng pera. Pero, ayon nga sa mga kasabihan, ang pag-iipon ay isang magandang paraan ng paghanda para sa hinaharap. Kahit na ang savings account ay hindi na ganoon kasikat sa kasaslukuyan, maigi pa rin na mapag-aralan ang ganitong klase na produkto ng bangko.

Klase ng savings account

Tulad  ng sinasabi ng mismong pangalan nito, ang silbi ng savings account ay ang makalipon ka ng pera isang account na nakapangalan sa iyo. Maaari itong invidiual or joint (kasama ang iyong kamag-anak, or business partner) account. Maliban dito, may mga partikular na klase ng savings account ang maaaring bagay sa ‘yo.

High-yielding savings account
Ang ganitong klaseng savings account ay nagbibigay ng mataas na interest rates. Magandang klase ng investment na ito sapagkat sadyang mababa ang panganib or risk nito. Ang natatanging disadvantage lang, may kataasan ang minimum deposit na kailangan para masimulan ito. Kalimitan, ang mga high-yielding savings account ay eksklusibo lamang para sa mga matataas ang kita.

Fixed interest account
Kalimitan din na kilala bilang fixed deposit o term deposit account, ang ganitong partikular na savings producy ay nagbibigay din ng mataas na interest rates. Pero, mayroong nakatakdang termino kung saan maaaring mag-withdraw ng pera mula sa ganitong klase ng account. Ang kagandahan naman dito, meron din itong choice kung gaano katagal ang ang terminong ito. Pwedeng piliiin ang short term accounts (halimbawa isa hanggang tatlong buwan, o long term, na umaabot hanggang limang taon.

Mga kinakailangan upang magbukas ng isang savings account

Dahil sa mga batas na naglalayong maiwasan ang money laundering, ang mga bangko ay mayroong mahigpit na requirements sa pagbubukas ng savings account. Ang karaniwang kailangang dokumento ay ang dalawang valid na ID at photocopy nito, billing statement, dalawang kopya ng 1×1 photo, filled-up application form at paunang deposito.

Maaari rin na  hingin ng bangko na ang aplikante ay magpakita sa bangko mismo, bago ka makapag-bukas ng savings account.

Mayoon ding pangunang minimum na deposito para sa bawat klase ng savings account. May ilang bangko na may polisiya na magpanaitili ka ng regular deposit amount para maka-enjoy ng mas mataas na intrest.

Mga pakinabang ng pagkakaroon ng savings account

Ang ilang mga benepisyo ng pagkakaroon ng sariling savings account ay ang mga sumusunod:

Siguradong pera
Mahirap maghanap ng pera sa panahon na kailangan mo ito. Ang pagkakaroon ng deposit account ang panigurado mo na kung may dumating na emergency, mayroon kang pagkukunan na pondo. Hindi mo kailangan ng personal loan para lamang makabayad sa pangangailangan.

Pagkakaroon ng magandang credit rating
Ang pagkuha ng malaking loan ay mas madali kung mayroon kang savings account. Mas makukumbinsi ang nagpapahiram ng pera na kaya mong bayaran ang loan, kung mayroon kang solid na savings account, kahit na ang laman ng iyong savings account ay mas maliit kaysa sa nais mong loan.

Magandang investment
Ang mga savings account ay isa sa mga pinakaligtas na investment. Ang disadvantage nga lang ay nagbibigay ito ng maliit na kita. Pero, binibigyan talaga nito ng pagkakataon ang isang tao na kumita ng pera sa isang regular na paraan.

Hindi pa huli na maghanda para sa iyong kinabukasan. Mag-ipon ng regular para maisaayos ang yong buhay pinansiyal. Walang makasasabi kung biglang magkakaroon ng pagtaas o pagbagsak ng ekonomiya sa mga susunod na taon, kaya’t mas maganda na lagi kang handa.

Alamin kung ano ang pinakamagandang savings account ngayon!

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